Why Cava Stock Jumped 25% in February
Shares of Mediterranean restaurant chain Cava (NYSE: CAVA) stock gained 25% in February according to data provided by S&P Global Market Intelligence. It reported strong fourth-quarter results and investors are excited about its potential.
Cava took the market by storm when it debuted as one of the only exciting initial public offerings (IPO) in a dry year last June. Investors have been following its trajectory to see if it can really make it as a popular and successful fast-casual restaurant chain.
So far, so good. Cava has surprised naysayers by reporting consistent progress, and investors were pleased with the 2023 fourth-quarter and full-year report. Revenue increased 60% year over year in 2023, with an 18% increase in comparable sales. Cava reported a $13.3 million net profit after a $59 million loss last year, and restaurant-level profit margin was 24.8%, 4.5 points higher than last year. Average unit volume increased from $2.4 million last year to $2.6 million this year, and it opened 72 new restaurants in 2023.
Source Fool.com
